Aug 16 (Reuters) – Authentic Brands (ABG), owner of Juicy Couture and Forever 21, has agreed to buy Ted Baker for around 211 million pounds (250.12 million euros) ending months of speculation over the fate of the British fashion group.
Pandemic-related losses forced Ted Baker to put itself up for sale in April and the company named a preferred buyer the following month. However, the buyer – which was already ABG – decided in June not to submit an offer, forcing Ted Baker to consider other options.
Ted Baker finally reached an agreement with the American group ABG, which also counts Reebok among its brands, consisting of a payment of 110 pence (1.30 euros) in cash for each Ted Baker share. This represents a premium of around 18.2% to Monday’s closing price.
Both companies said the deal would not be reviewed unless a rival suitor comes forward.
“ABG believes that there are significant growth opportunities for the Ted Baker brand in North America given (its) (..) strong consumer recognition in this market,” the listed company said in a statement on Tuesday. New York.
Known for his eccentrically detailed suits, shirts and dresses, Ted Baker is on the mend and hopes to benefit from a rebound in demand for office and leisure wear.
Ted Baker in May posted a lower annual loss year on year to 38.4 million pounds and said sales in the first quarter of the current year were up 20% year on year.
The company had also rejected several offers from private equity group Sycamore before going up for sale. The deal is the latest of many involving UK companies, made more affordable to overseas buyers by the weak pound.
Ted Baker shares rose around 17% to 108 pence in early trading, slightly below the offer price and well off its 2015 record high of 2,972 pence per share. (Report Pushkala Aripaka; French version Dagmarah Mackos, editing by Kate Entringer)